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2025-2034 Artificial Intelligence (AI) In Customer Experience Market Evolution: Disruptions, Innovations, and Untapped Opportunities
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.What Is the Expected CAGR for the Artificial Intelligence (AI) In Customer Experience Market Through 2025?
The market size for artificial intelligence (AI) in customer experience has seen an exponential growth over the recent years. It is projected to escalate from $13.9 billion in 2024 to $17.75 billion in 2025, with a compound annual growth rate (CAGR) of 27.7%. The expansion during the historical period is due to factors such as reduction of operational costs through AI, the surge in the employment of AI-powered chatbots, rising customer expectations, and enhancements in customer data security and fraud detection.
What's the Projected Size of the Global Artificial Intelligence (AI) In Customer Experience Market by 2029?
In the coming years, it is anticipated that the artificial intelligence (AI) in customer experience market will experience an unprecedented expansion. The market is predicted to reach $46.9 billion by 2029, with a compound annual growth rate (CAGR) of 27.5%. The expected growth during this forecast period is due to several factors including the expanding use of AI in mobile applications, the increased preference for AI-aided self-service options, the surge in real-time decision making, scalability, as well as the escalated multilingual support. Key trends forecasted for this period involve the merge of robotic process automation and AI, the use of AI for predictive analytics, the cooperation with CRM systems, enhancement in natural language processing, and improvements in deep learning models.
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Top Growth Drivers in the Artificial Intelligence (AI) In Customer Experience Industry: What's Accelerating the Market?
Anticipated advancements in digital channels is likely to fuel the development of AI in the realm of customer experience. Digital channels encompass a wide variety of online tools and platforms used by organizations to facilitate interaction with customers, execute transactions, and distribute products and content. These channels heighten customer engagement, simplify communication, and offer bespoke experiences across a diverse range of platforms. AI magnifies the capabilities of these digital channels, offering automated personalized interaction, immediate support, and the ability to analyze customer data to enhance engagement and satisfaction. To underscore this point, the Office for National Statistics, a UK government agency, reported that in the fourth quarter of 2022, online sales made up 27.6% of all retail sales. This figure climbed to 28.7% in the fourth quarter of 2023, displaying a year-on-year uptick in the contribution of online sales to the retail sector. As such, the evolving landscape of digital channels is promoting the advancement of AI in the customer experience market.
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What Trends Will Shape the Artificial Intelligence (AI) In Customer Experience Market Through 2029 and Beyond?
Leading organizations in the AI in customer experience industry are creating AI-enhanced assistants to strengthen their customer relationship management (CRM) competencies. These AI-assisted solutions elevate customer experiences by delivering immediate, precise responses to inquiries, tailoring interactions based on the customer's data, and executing regular tasks efficiently, all of which amplify customer satisfaction and operational productivity. For example, Salesforce, an American software firm, ushered in Einstein Copilot, an AI-powered assistant, in September 2023. Einstein Copilot amplifies the customer engagement by harnessing the power of AI to deliver personalized interactions and automate various functionalities within Salesforce's CRM platform. The primary objective is to facilitate sales, service, marketing, and commerce teams to function more effectively by expediting deal finalizations, streamlining case solutions, simplifying campaign building, and aiding with e-commerce chores.
What Are the Main Segments in the Artificial Intelligence (AI) In Customer Experience Market?
The artificial intelligence (AI) in customer experience market covered in this report is segmented -
1) By Component: Solution, Services
2) By Deployment Mode: Cloud-Based, On-Premise
3) By Organization Size: Large Enterprises, Small And Medium-Sized Enterprises (SMEs)
4) By Application: Chatbots And Virtual Assistants, Sentiment Analysis, Customer Behavior Analytics, Personalized Recommendations, Other Applications
5) By Industry Vertical: Retail And E-commerce, Banking, Financial Services, And Insurance (BFSI), Information Technology (IT) And Telecommunications, Healthcare, Travel And Hospitality, Media And Entertainment, Other Industry Verticals
Subsegments:
1) By Solution: AI-Powered Chatbots And Virtual Assistants, Sentiment Analysis Tools, Personalization Engines, Predictive Analytics For Customer Behavior, Customer Journey Mapping Tools, Voice And Speech Recognition Systems, AI-Based Recommendation Engines, AI-Driven Customer Feedback Analysis
2) By Services: AI Integration And Implementation Services, Consulting Services For Customer Experience Strategy, AI Model Training And Customization Services, Data Analytics And Reporting Services, Managed Services For AI-Powered Customer Experience, Post-Implementation Support And Maintenance, Customer Experience Optimization Services
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Which Top Companies are Driving Growth in the Artificial Intelligence (AI) In Customer Experience Market?
Major companies operating in the AI in customer experience market are Google LLC, Microsoft Corporation, Amazon Web Service, International Business Machines Corporation, Oracle Corporation, SAP SE, Salesforce Inc., Nvidia Corporation, Adobe Inc., Avaya LLC, NICE Ltd., Nuance Communications Inc., Zendesk Inc., Genesys Cloud Services Inc., Pegasystems Inc., Qualtrics LLC, Verint Systems Inc., Sprinklr Inc., Aptean Limited, Freshworks Inc., Medallia Inc., Hootsuite Inc., Servion Global Solutions Ltd., Intercom Inc., Ada Support Inc.
Which Regions Will Dominate the Artificial Intelligence (AI) In Customer Experience Market Through 2029?
North America was the largest region in the artificial intelligence (AI) in customer experience market in 2024. The regions covered in the artificial intelligence (AI) in customer experience market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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